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To: Chuckles_Bee who wrote (34381)2/27/2007 9:25:20 PM
From: koan  Read Replies (1) | Respond to of 78424
 
Chuckles re poker. At the very highest levals of poker say no limit with $50/$100 blinds or even a good $40/$80 game bulffing is the primary key to winning.

The greatest odds player who cannot bluff will lose his lunch!



To: Chuckles_Bee who wrote (34381)2/27/2007 10:35:37 PM
From: tyc:>  Read Replies (1) | Respond to of 78424
 
Here's my contribution to the fray, FWIW.

>>and it is worth what the market says it's worth .

But we don't buy stocks for the sake of their present market value; we buy because of the $ increment if the price improves. We are short term speculators. With a warrant you pay less for the same $ increment.... why pay more ?



To: Chuckles_Bee who wrote (34381)2/27/2007 10:43:11 PM
From: maxncompany  Respond to of 78424
 
And this is the difference. I understand koan's example. But that's more theoretical.

A more real world application is that a person has a certain amount to invest in his account, say $3,000. He can buy (rounded off for example) either 1,000 shares at $3.00 or 5,000 warrants at $0.60. He doesn't say to himself, "I can invest $3,000 in shares, but I can only invest $600 in warrants (1,000 shares or 1,000 warrants)." Of course not. The big thing about warrants is the leverage.......and 5,000 warrants is a lot more leverage than 1,000 warrants......and it's spending the same as he would have for the 1,000 shares.

Not disagreeing with koan on being pro-warrants.....I am pro-warrants. I just don't think his example is as real life practical scenario as spending the same amount of money on one's choice of either shares or warrants.